Which of the Following Statements Is True Regarding Ethical Issues

question 48

Multiple Choice

Which of the following statements is true regarding ethical issues accompanying budgeting?

• A) Conflicts of interest do not arise when employees are asked for input to help establish a budget.
• B) Easy target incentives are eliminated through budgeting.
• C) The conflicts of biased budgeting can be avoided in a decentralized firm.
• D) If budget targets are difficult to meet, employees could turn to fraudulent financial reporting.

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Definitions:

Functional Job Analysis

A method of job analysis that describes a job in terms of the tasks performed and the competencies required to perform those tasks.

Job Analysis Method

A systematic process used to identify the duties, responsibilities, and requirements of a specific job.

Organizations

Groups of people structured systematically to achieve specific goals or perform specific tasks.

Time-And-Motion Study

An analysis designed to optimize productivity by studying the tasks within a job, to reduce inefficiency and increase effective use of human effort.